𝗪𝗵𝗮𝘁 𝗵𝗮𝗽𝗽𝗲𝗻𝘀 𝘁𝗼 𝗺𝘆 𝟱𝟮𝟵 𝗽𝗹𝗮𝗻 𝗶𝗳 𝗺𝘆 𝗰𝗵𝗶𝗹𝗱 𝗱𝗼𝗲𝘀 𝗻𝗼𝘁 𝗴𝗼 𝘁𝗼 𝗰𝗼𝗹𝗹𝗲𝗴𝗲?
You can roll over up to $35,000 of unused 529 funds directly into a Roth IRA for your child without paying federal taxes or penalties.
To qualify, the rollover has to meet several IRS rules:
• The 529 account must be open for at least 15 years
• The total lifetime rollover cap is $35,000 per beneficiary
• The annual rollover is limited by the yearly IRA contribution cap, which is $7,500 in 2026 for someone under age 50
• The beneficiary must have taxable compensation at least equal to the amount rolled over
• Contributions made during the previous five years, along with the earnings on them, can’t be rolled over
We get it, tax rules are a lot to digest when you're trying to plan for your child’s future. Every family’s picture is a little different, and I’d love to help you figure out if a 529 plan actually makes sense for your specific goals.
𝘞𝘩𝘢𝘵 𝘦𝘭𝘴𝘦 𝘸𝘰𝘶𝘭𝘥 𝘺𝘰𝘶 𝘸𝘢𝘯𝘵 𝘵𝘰 𝘬𝘯𝘰𝘸 𝘢𝘣𝘰𝘶𝘵 𝘴𝘦𝘵𝘵𝘪𝘯𝘨 𝘶𝘱 𝘢 529 𝘱𝘭𝘢𝘯? Ask your questions in the comments below.
0 CommentsComment on Facebook
𝗛𝗼𝘄 𝗰𝗮𝗻 𝗜 𝗰𝗵𝗲𝗰𝗸 𝗺𝘆 𝘁𝗮𝘅 𝘀𝘁𝗮𝗻𝗱𝗶𝗻𝗴 𝗯𝗲𝗳𝗼𝗿𝗲 𝗳𝗶𝗹𝗶𝗻𝗴 𝘀𝗲𝗮𝘀𝗼𝗻?
Setting up an IRS Individual Online Account gives you direct access to your payment history, tax balances, and digital notices in one place.
Checking your account early lets you verify your estimated tax payments, catch surprise balances before interest builds up, and spot IRS notices weeks before they arrive in the mail.
We know this can be overwhelming, but you don't have to figure it out alone. Send us a DM and we can walk you through the process to help you manage your tax standing.
𝘏𝘢𝘷𝘦 𝘺𝘰𝘶 𝘴𝘦𝘵 𝘶𝘱 𝘺𝘰𝘶𝘳 𝘐𝘙𝘚 𝘐𝘯𝘥𝘪𝘷𝘪𝘥𝘶𝘢𝘭 𝘖𝘯𝘭𝘪𝘯𝘦 𝘈𝘤𝘤𝘰𝘶𝘯𝘵 𝘺𝘦𝘵?
𝘈) 𝘠𝘦𝘴
𝘉) 𝘕𝘰𝘵 𝘺𝘦𝘵
𝘊) 𝘐 𝘥𝘪𝘥𝘯’𝘵 𝘬𝘯𝘰𝘸 𝘵𝘩𝘪𝘴 𝘸𝘢𝘴 𝘢𝘷𝘢𝘪𝘭𝘢𝘣𝘭𝘦
👇 Here’s the official IRS guide for setting up your account:
[ www.irs.gov/newsroom/irs-individual-online-accounts-an-easy-tool-for-taxpayers ]
IRS Individual Online Accounts: An easy tool for taxpayers | Internal Revenue Service
www.irs.gov
Tax Tip 2026-16, Feb. 26, 2026 — The IRS continues to take steps towards transforming the taxpayer experience in several ways.0 CommentsComment on Facebook
𝗛𝗼𝘄 𝗱𝗼 𝗜 𝗲𝗹𝗲𝗰𝘁 𝗦 𝗰𝗼𝗿𝗽 𝘀𝘁𝗮𝘁𝘂𝘀 𝗳𝗼𝗿 𝗺𝘆 𝗟𝗟𝗖?
If your annual net profit is over $60,000 and your cash flow is steady, an S corporation election can make sense for your business. Here are the main steps to get started:
1. File IRS Form 2553. Submit this within 75 days of the start of the tax year (March 15 for calendar-year businesses) or within 75 days of forming a new LLC. All owners must sign.
2. Set up W-2 payroll. Document a reasonable salary based on the work you perform, your responsibilities, and relevant pay data. Set up payroll to withhold the required income and payroll taxes from your W-2 salary.
3. Separate your accounting ledgers. Keep strict records separating W-2 wages from shareholder distributions.
4. Track your new filing requirements. A calendar-year S corporation generally files Form 1120-S by March 15 and provides each shareholder with a Schedule K-1.
Missed the deadline? You can qualify for late-election relief if you had reasonable cause and meet the IRS requirements, including filing within three years and 75 days of the intended effective date.
Comment S CORP below if you want help figuring out whether the election makes sense and what you’d need to set up.
0 CommentsComment on Facebook
𝗪𝗵𝘆 𝘀𝗵𝗼𝘂𝗹𝗱 𝗜 𝘂𝘀𝗲 𝗮 𝟱𝟮𝟵 𝗽𝗹𝗮𝗻 𝗶𝗻𝘀𝘁𝗲𝗮𝗱 𝗼𝗳 𝗮 𝘀𝘁𝗮𝗻𝗱𝗮𝗿𝗱 𝗶𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁 𝗮𝗰𝗰𝗼𝘂𝗻𝘁 𝗳𝗼𝗿 𝗰𝗼𝗹𝗹𝗲𝗴𝗲 𝘀𝗮𝘃𝗶𝗻𝗴𝘀?
A 529 plan can protect your college savings from annual taxes on dividends and capital gains, with tax-free withdrawals for qualified education expenses.
In a standard brokerage account, dividends and realized capital gains can create a tax bill along the way. Those taxes leave less money in the account to keep growing.
A 529 plan handles your growth differently:
• You contribute money that has already been taxed, so there’s no federal deduction on your return.
• The money can grow without annual federal taxes on dividends or capital gains.
• Withdrawals are tax-free when you use them for qualified education expenses.
Depending on your state, you may also qualify for a state income tax deduction or credit when you contribute.
𝘋𝘰 𝘺𝘰𝘶 𝘤𝘶𝘳𝘳𝘦𝘯𝘵𝘭𝘺 𝘩𝘢𝘷𝘦 𝘢 529 𝘱𝘭𝘢𝘯 𝘴𝘦𝘵 𝘶𝘱 𝘧𝘰𝘳 𝘺𝘰𝘶𝘳 𝘬𝘪𝘥𝘴?
0 CommentsComment on Facebook
𝗦𝗵𝗼𝘂𝗹𝗱 𝗜 𝗲𝗹𝗲𝗰𝘁 𝗦 𝗖𝗼𝗿𝗽𝗼𝗿𝗮𝘁𝗶𝗼𝗻 𝘀𝘁𝗮𝘁𝘂𝘀 𝗳𝗼𝗿 𝗺𝘆 𝗟𝗟𝗖?
An S corporation election could cut your tax bill by keeping part of your business profit from being subject to the 15.3% self-employment tax.
Under a default LLC, your net profit faces income tax plus the 15.3% self-employment tax.
When you elect S corp status, you split your earnings into two parts:
• A reasonable W-2 salary (subject to payroll taxes)
• Shareholder distributions (exempt from self-employment taxes)
Distributions bypass the 15.3% self-employment tax entirely, which drops your overall tax burden.
Now, running an S corp does come with extra administrative tasks like payroll software, bookkeeping overhead, and corporate return fees.
But once your annual net profit crosses roughly $60,000, your tax savings outpace those extra costs, putting more money back into your business.
𝘏𝘢𝘷𝘦 𝘺𝘰𝘶 𝘭𝘰𝘰𝘬𝘦𝘥 𝘪𝘯𝘵𝘰 𝘢𝘯 𝘚 𝘤𝘰𝘳𝘱𝘰𝘳𝘢𝘵𝘪𝘰𝘯 𝘦𝘭𝘦𝘤𝘵𝘪𝘰𝘯 𝘧𝘰𝘳 𝘺𝘰𝘶𝘳 𝘓𝘓𝘊?
0 CommentsComment on Facebook
𝗪𝗵𝘆 𝗱𝗼 𝗜 𝗵𝗮𝘃𝗲 𝘁𝗼 𝗽𝗮𝘆 𝘁𝗮𝘅𝗲𝘀 𝗼𝗻 𝗦𝗲𝗽𝘁𝗲𝗺𝗯𝗲𝗿 𝟭𝟱 𝗶𝗳 𝗺𝘆 𝘁𝗮𝘅 𝗿𝗲𝘁𝘂𝗿𝗻 𝗶𝘀𝗻'𝘁 𝗱𝘂𝗲 𝘂𝗻𝘁𝗶𝗹 𝗻𝗲𝘅𝘁 𝘆𝗲𝗮𝗿?
Because when you earn income from a business or side hustle, the IRS requires you to make estimated tax payments on those earnings as you make them, rather than waiting until you file.
The US operates on a pay-as-you-go system. The government expects its share of your income throughout the year, which is why September 15 is the official deadline to submit taxes on what your business earned during June, July, and August.
If you don't have taxes automatically withheld from a paycheck, this is when the IRS collects on those summer earnings.
Want to check your numbers before the deadline? Comment 𝗣𝗟𝗔𝗡 below, and we can look at your withholding together.
0 CommentsComment on Facebook
